There are mixed views from analysts on whether the current rally in the gold price can be sustained over the longer term.

During the first quarter of this year, the gold price was helped by the global financial and political uncertainty: reports of a slowdown in China and terror attacks and threats. This helped to quash the value of currencies including the US dollar.

A report by Citi said: “As risk calms down, equity markets perform well and long end yields in the US and Germany .... rise, that is not a recipe that favours gold.”

However, HSBC took the opposite view and said momentum was up and it was expecting the gold price to increase further.

The better gold prices are also due to a combination of investment from central banks, institutional and private investors.

Charles Morris from the AtlasPulse Report, told the Daily Telegraph: “Changes in investor interest explain 80 per cent of the move in the gold price. When they buy, it rises, and when they sell, it falls. It is as simple as that.”

The threat of negative interest rates is also pushing buyers towards the precious metal, amid fears policies by global central banks will not be enough to stimulate the worldwide economy.

Alistair Hewitt, head of market intelligence at the World Gold Council, said: “Negative interest rates are the key reason why central bankers and institutional investors are now returning or expanding their allocations to gold.”

Sellers of physical gold coins and bars, like the Gold Bullion Co, have seen an upsurge in interest and new customers since the start of the year. Whether the rally is sustained or not, it’s still a good time to get in with gold investment, as prices could well go much higher. Remember, with any form of investment, prices do go down as well as up.